Correlation Between Roundhill Uranium and Global X

Can any of the company-specific risk be diversified away by investing in both Roundhill Uranium and Global X at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Roundhill Uranium and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Roundhill Uranium ETF and Global X MLP, you can compare the effects of market volatilities on Roundhill Uranium and Global X and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Roundhill Uranium with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Uranium and Global X.

Diversification Opportunities for Roundhill Uranium and Global X

0.61

Correlation Coefficient

Roundhill Uranium  Global X

Poor diversification

The 3 months correlation between Roundhill and Global is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Uranium ETF and Global X MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MLP and Roundhill Uranium is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Roundhill Uranium ETF are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X MLP has no effect on the direction of Roundhill Uranium i.e., Roundhill Uranium and Global X go up and down completely randomly.

Pair Corralation between Roundhill Uranium and Global X

Allowing for the 90-day total investment horizon Roundhill Uranium ETF is expected to generate 2.33 times more return on investment than Global X. However, Roundhill Uranium is 2.33 times more volatile than Global X MLP. It trades about 0.06 of its potential returns per unit of risk. Global X MLP is currently generating about 0.07 per unit of risk. If you would invest  2,395  in Roundhill Uranium ETF on May 4, 2025 and sell it today you would earn a total of  187.00  from holding Roundhill Uranium ETF or generate 7.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Roundhill Uranium ETF  vs.  Global X MLP

Roundhill Uranium ETF

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Roundhill Uranium ETF are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Roundhill Uranium may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Global X MLP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global X MLP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Global X is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Roundhill Uranium and Global X

The main advantage of trading using opposite Roundhill Uranium and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Uranium position performs unexpectedly, Global X can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global X will offset losses from the drop in Global X's long position.

The idea behind Roundhill Uranium ETF and Global X MLP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.